IRC code section 217 allowed an above-the-line deduction for moving expenses paid or incurred during the tax year in connection with the commencement of work by the taxpayer as an employee or self-employed individual at a new principal place of work. IRC section 217 is amended by IRC section 11049.
The moving expense deduction is reported on Form 3903 and flows to Schedule 1 line 26.
Entering Qualified Moving Expense Reimbursement:
- Go to Screen 10, Wages, Salaries, Tips.
- Within the Box 12 input fields enter a Code P - Excludable moving expense reimbursements along with the dollar amount reported on W-2.
- Go to Screen 27, Moving Expense (3903).
- Enter all applicable moving details.
- Mark the box Armed forces move due to permanent change of station to generate Form 3903.
Form W-2 #: Excludable moving expenses reimbursements were linked to Form 3903, but the "Armed forces move due to a permanent change of station" box was not selected, making the move non-deductible for federal. (ref. #50965)
Form 3903 #: Only members of the Armed Forces are allowed moving expense deductions. If you are a member of the Armed Forces, please return to the Moving Expense screen and select "Armed forces move due to permanent change in station." (ref. #50961)
Generating Form 3903 Moving Expenses (Click Here to view)
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